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Personal vs Non-Personal Services Contracts

2. Agenda. . Definition of a Personal Services Contract Federal Government Policy and Regulatory Guidance TRICARE Management Activity (TMA) Responsibilities Guiding Principles How to Recognize an Unlawful Personal Services Contract Methods of Reporting Impact

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Personal vs Non-Personal Services Contracts

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    1. Personal vs Non-Personal Services Contracts

    2. 2 Agenda

    3. 3 Personal Services Contracts Definition A Personal Services Contract is a contract that, by its express terms or as administered, makes the contractor personnel appear, in effect, Government employees. i.e., contractor personnel are subject to the relatively continuous supervision of a Government official. The Government is normally required to obtain its employees by direct hire under competitive appointment or other procedures required by the civil service laws unless Congress has specifically authorized acquisition of the services by contract. Obtaining personal services by contract, rather than by direct hire, circumvents civil service laws unless specifically authorized by Congress. Depending on how a contract is administered and how contract personnel are used, the Government-Contractor relationship may evolve into an unlawful personal services arrangement.

    4. 4 Statutory and Regulatory Framework

    5. 5 Contractor Ethics Regulations

    6. 6 Regulatory Requirements

    7. 7 Regulatory Requirements

    8. 8 Regulatory Requirements

    9. 9 TMA Personnel Responsibilities TMA is not authorized to enter into Personal Service Contracts for other than purchased-care contracts. TMA personnel are responsible for ensuring that Government-Contractor relationships do not evolve into unlawful personal services arrangements. TMA personnel are responsible for reporting and stopping an unlawful personal services arrangement.

    10. 10 Guiding Principles for TMA TMA personnel should: Ensure contractors are complying with all Government policies, as well as the terms and conditions of the contract. Implement management control measures to the terms of the contract. Play an active, attentive role during contract administration. Be aware of the Governments degree of reliance on service Contractors. The greater the degree of reliance on contractors the greater the need for oversight by agencies. Ensure contractors are always clearly identified as contractors. Exercise independent judgment and critically examine all contractor advice, opinions, recommendations, ideas, reports, analyses, and other work products. Protect classified, proprietary, and sensitive information by ensuring proper procedures are followed for distribution and storage.

    11. 11 Guiding Principles for TMA

    12. 12 Recognizing Unlawful Personal Service Contracts In determining whether an employer-employee relationship exists, the key question will always be: Will the Government exercise relatively continuous supervision and control over the contractor personnel performing the contract? FAR 37.104(d) provides the following additional guidance: Is performance on site? (i.e., on a Government Installation) Are the principal tools and equipment furnished by the government? Are the services being performed by the contractor directly related to the accomplishment of the agencies assigned mission or function? Are comparable services being performed in the same agency by civil service personnel? Will the need for this type service be expected to last beyond 1 year? Does the nature of the service being provided reasonably require Government direction or supervision of contractor employees in order to adequately protect the Governments interest, retain control of the function involved, or retain personal responsibility for the function by a duly authorized Federal officer or employee?

    13. 13 Recognizing Unlawful Personal Service Contracts

    14. 14 Methods of Reporting

    15. 15 Impact and Consequences

    16. 16 Questions & Answers

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